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Processor Selector

2007 Another Record Breaking Year for Semiconductor Sales

Doubled DRAM shipments compensate for lower prices
by Adrian Offerman

Februari 1, 2008 - The global sales of semiconductors grew for the sixth-consecutive year, reaching a record $255.6 billion in 2007, the Semiconductor Industry Association (SIA) reports today. That is an increase of 3.2 percent from the $247.7 billion reported in 2006.

Worldwide sales in December were $22.3 billion, an increase of 2.5 percent compared to the $21.7 billion reported in December 2006. December 2007 sales declined by 3.6 percent from the immediate-prior month when sales were $23.1 billion. The modest sequential decline in December reflected normal seasonal patterns. Worldwide sales in the fourth quarter of 2007 were $66.8 billion, an increase of 2.5 percent over fourth-quarter 2006 sales of $65.2 billion.

Shipments and Prices

The major drivers of demand for semiconductors - personal computers, mobile handsets, and consumer electronics - remained strong in 2007, said SIA president George Scalise. Shipments of personal computers, which account for approximately 40 percent all semiconductor consumption, grew by 13.8 percent and will grow by 12.2 percent in 2008, according to JPMorgan. Mobile PC unit sales grew 32.2 percent while desktop unit sales grew by 4.1 percent. According to JPMorgan, cell phone unit shipments grew by 20 percent to nearly 1.2 billion units in 2007. Current forecasts project 10 to 15 percent growth in unit shipments in 2008.

The memory sector reflected the strong pricing pressures that prevailed throughout 2007, Scalise continued. Average selling prices (ASPs) for both DRAMs and NAND flash declined precipitously through the year. Total industry sales, excluding memory products, were up by 4.5 percent year-on-year. Total bit shipments for DRAMs nearly doubled in 2007, but total revenues declined by 7.4 percent due to a decline of more than 39 percent in ASPs. NAND flash revenues were up 26 percent but unit shipments grew even faster at nearly 46 percent, while ASPs declined by 13.7 percent.